Question
Please explain solutions Exercise 9-17 Nieto Companys budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $261,300 $39,300 February
Please explain solutions
Exercise 9-17
Nieto Companys budgeted sales and direct materials purchases are as follows.
Budgeted Sales | Budgeted D.M. Purchases | ||||
January | $261,300 | $39,300 | |||
February | 250,800 | 43,300 | |||
March | 344,000 | 44,000 |
Nietos sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nietos purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. (Round answers to 0 decimal places, e.g. 2,500.)
NIETO COMPANY Expected Collections from Customers | ||
March | ||
March cash salesCollection of March credit salesCollection of February credit salesCollection of January credit salesJanuary cash salesPayment of February credit purchasesFebruary cash salesMarch cash purchasesPayment of March credit purchases | $ | |
Collection of January credit salesJanuary cash salesCollection of March credit salesCollection of February credit salesMarch cash purchasesPayment of March credit purchasesFebruary cash salesMarch cash salesPayment of February credit purchases | ||
Payment of March credit purchasesCollection of February credit salesCollection of January credit salesFebruary cash salesJanuary cash salesMarch cash purchasesMarch cash salesPayment of February credit purchasesCollection of March credit sales | ||
March cash purchasesMarch cash salesPayment of February credit purchasesCollection of March credit salesCollection of February credit salesCollection of January credit salesPayment of March credit purchasesFebruary cash salesJanuary cash sales | ||
Total collections | $ |
(b) Prepare a schedule of expected payments for direct materials for March. (Round answers to 0 decimal places, e.g. 2,500.)
NIETO COMPANY Expected Payments for Direct Materials | ||
March | ||
Collection of January credit salesFebruary cash salesMarch cash purchasesPayment of March credit purchasesPayment of February credit purchasesJanuary cash salesMarch cash salesCollection of March credit salesCollection of February credit sales | $ | |
Collection of January credit salesMarch cash salesFebruary cash salesCollection of March credit salesCollection of February credit salesMarch cash purchasesJanuary cash salesPayment of February credit purchasesPayment of March credit purchases | ||
Collection of February credit salesPayment of March credit purchasesCollection of January credit salesMarch cash salesPayment of February credit purchasesMarch cash purchasesCollection of March credit salesFebruary cash salesJanuary cash sales | ||
Total payments | $ |
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